TL;DR
- Shiba Inu (SHIB) increased by 5% over the past week and 30% monthly, possibly driven by the overall market revival and a sharp rise in its token burn rate.
- On the other hand, negative sentiment on Telegram and stalled Shibarium activity suggest a potential correction ahead.
SHIB Heads North Again
The second-largest meme coin in terms of market capitalization witnessed a substantial resurgence in the past week. Its price increased by 5% during that period, currently standing at around $0.0000183 (per CoinGecko’s data).
The latest rally could be attributed to several factors, with the overall market revival being one example. As CryptoPotato reported earlier today (October 15), Bitcoin (BTC) soared to a three-week high of approximately $66,500. In the following hours, it slightly retraced to the current $65,700.
Other leading cryptocurrencies recording significant increases include Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and more. The meme coin sector, for its part, has performed even better, with TURBO, NEIRO, and MEW spiking by double digits on a 24-hour scale.
The second element possibly driving SHIB’s value up is the progress of the burning program. Data shows that the burn rate exploded by 1,700% in the past seven days and almost 8,000% in the last 24 hours alone, resulting in hundreds of millions of tokens sent to a null address.
The mechanism’s ultimate goal is to reduce the circulating supply of the meme coin, making it scarcer and potentially more valuable in time (should demand head north or remain constant).
Last but not least, we will focus on SHIB’s exchange netflows, which have been on a massive downfall in the last week (outflows surpassing inflows). This signals a shift from centralized platforms toward self-custody methods and could be interpreted as a bullish sign since it lowers the immediate selling pressure.
Bears, Take a Look at This
Despite the aforementioned elements suggesting a further rally for SHIB, some hint that a correction could be just around the corner.
According to IntoTheBlock, the Telegram sentiment is predominantly negative. Specifically, 35% of the SHIB-related messages on the platform are pessimistic, while less than 10% are on the opposite corner. Shiba Inu has one of the largest and most dedicated communities in the crypto space. As a result, the mood within messaging platforms can influence trading behavior, swaying decisions to buy or sell based on the prevailing sentiment.
Another factor worth mentioning is Shibarium’s stalled progress. Daily transactions on the layer-2 scaling solution have hovered below 10,000 for the past few weeks, pointing at a potential decline in user interest and activity. For more updates on the ecosystem, make sure to check out our Shibarium news page.
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